# China Reintroduces Measure to Help Defend Yuan Exchange Rate - Caixin Global

> China's central bank revived the countercyclical factor in calculating the yuan's daily midpoint to support the currency. The yuan jumped more than 300 pips offshore to about 6.87 per dollar after the announcement, having lost nearly 8% since mid-March amid trade tensions with the US.

- Date: 2018-08-25 · published 2018-08-25T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/10039-china-reintroduces-measure-to-help-defend-yuan-exchange-rate-caixin-global
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A firmer yuan reduces the price advantage of US exports to China and can ease Chinese buying pressure on US soybeans and feed ingredients. The policy move signals state intervention against depreciation driven by tariff disputes.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2018-08-24 | 1 | -1.0% | -3.5 | Describes the same countercyclical factor revival and the 300+ pip offshore yuan jump to about 6.87, directly explaining the one-day drop in CNY per USD, though it is dated a day after the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-08-30 | [China Sets Yuan Midpoint Against Dollar at One-Year High   - Caixin Global](https://feedsoft.ai/events/10857-china-sets-yuan-midpoint-against-dollar-at-one-year-high-caixin-global.md) | -1.1% | +0.7% |
| USDCNY | 2021-05-28 | [Chinese regulators vow to crack down on yuan exchange manipulation](https://feedsoft.ai/events/47315-chinese-regulators-vow-to-crack-down-on-yuan-exchange-manipulation.md) | +0.2% | +1.1% |
| USDCNY | 2023-05-19 | [PBOC calls for efforts to prevent drastic exchange rate changes - Chinadaily.com.cn](https://feedsoft.ai/events/36182-pboc-calls-for-efforts-to-prevent-drastic-exchange-rate-changes-chinadaily-com.md) | +0.6% | +1.3% |
| USDCNY | 2022-09-05 | [China c.bank to cut FX reserve ratio to help limit yuan weakness](https://feedsoft.ai/events/12267-china-c-bank-to-cut-fx-reserve-ratio-to-help-limit-yuan-weakness.md) | +0.4% | +3.1% |
| USDCNY | 2026-02-27 | [China encourages dollar buying to slow surging yuan \| Reuters](https://feedsoft.ai/events/7895-china-encourages-dollar-buying-to-slow-surging-yuan-reuters.md) | +0.7% | +1.0% |
| SOY | 2019-09-12 | [China Vows to Ensure There’s Enough Pork to Eat - Caixin Global](https://feedsoft.ai/events/57092-china-vows-to-ensure-there-s-enough-pork-to-eat-caixin-global.md) | +4.1% | +8.2% |
| SOY | 2019-02-05 | [The Global Miller: Troubled China opts to reduce protein in animal feed](https://feedsoft.ai/events/60666-the-global-miller-troubled-china-opts-to-reduce-protein-in-animal-feed.md) | -1.5% | -1.9% |
| SOY | 2021-04-21 | [Reshaping grain trade? China moves to change animal feed recipes \| Reuters](https://feedsoft.ai/events/47641-reshaping-grain-trade-china-moves-to-change-animal-feed-recipes-reuters.md) | +5.3% | +6.9% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2018-08-25/china-reintroduces-measure-to-help-defend-yuan-exchange-rate-101318828.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.